NEW YORK ( TheStreet) -- Natural gas prices have seen some glimmers of life during the opening weeks of 2012, leading investors and analysts to question whether the battered fuel's multi-year descent is at last coming to an end.Despite this improving sentiment, I believe conservative minded investors should continue to steer clear. As I explained at the
Premiums can magnify a fund's action in either direction, making it difficult for investors to predict where it will head next. The impact could be seen recently when comparing the recent performance of GAZ to UNG. Both are designed to track the performance of natural gas futures contracts. On Friday, however, GAZ jumped over 2% while UNG, which currently boasts no premium, fell 1.5%. In the event that GAZ's creation/redemption mechanism is eventually restored to normal, investors can expect GAZ to quickly realign with its underlying index. For investors left holding onto the ETN, such a move would likely prove gut-wrenching. While interesting to watch, GAZ is not a fund I would encourage any long-term minded investor to try their luck with at this time. Written by Don Dion in Williamstown, Mass.